Blog: Net zero transition

Data analysis of Boiler Upgrade Scheme (BUS) approvals - which offer grants of £7,500 towards the full cost of a heat pump - and local authority population numbers across England and Wales has revealed the wealthiest regions are gaining the most from the heat pump scheme.

In fact, the most subsidised local authority, South Hams in Devon, has received over 50 times the subsidised heating appliances compared to Blackpool, the least subsidised local authority outside of London.

Which local authorities have gained the most?

• South Hams in Devon
• North Devon
• Mid Devon
• Cornwall
• The Derbyshire Dales

Which local authorities have gained the least?

• Blackpool
• Burnley
• Sandwell and Dudley
• Luton
• Liverpool

With an average heat pump installation costing £13,300, this means homeowners typically only have to spend £5,800 on this investment, once the £7,500 BUS grant is applied. However, the research from EUA demonstrates the BUS disproportionately benefits wealthier households, who can afford this capital outlay, while low-income households are unable to make the same commitment to greener energy options.

In fact, the analysis found affluent areas that are second home hotspots - such as Devon, Cornwall and the Derbyshire Dales - are receiving substantially more support from the BUS.

The full data table can be viewed here.

Exploiting a net zero rift

Commenting on the research, Steve Brittan, CEO of Xoserve, said: “This analysis unearths a growing divide between the wealthy and less wealthy in Britain, as we move towards net zero. Less affluent areas simply do not have the disposable income to contribute almost £6,000 towards a new heat pump installation, whereas homes in the wealthiest local authorities can make the most of the £7,500 government grants.

“For Britain to achieve its net zero ambitions, no community can be left behind. Put simply, we can’t get to net zero without addressing inequality.

“With home heating representing 18% of UK greenhouse gas emissions and the BUS receiving lower uptake than expected, it’s clear the government needs to tackle the disparity between wealthier and less well-off regions - and fast.”

Applications for the BUS scheme jumped 40% in January 2024 when compared with January 2023. Likely due to the fact the government increased the grant available from between £5-6,000 to £7,500, but for Britain to deliver on its decarbonisation goals, it’s vital that less wealthy local authorities can access the same green energy opportunities as others.

Mike Foster, CEO of the EUA, warned: “Looking at the full analysis, across England it looks suspiciously like areas where holiday homes are prevalent are major beneficiaries of the subsidies, compared to inner-city or urban areas. I’m sure the taxpayers of Blackpool, Burnley, Sandwell and Dudley, Luton and Liverpool are less than happy to fund these cash handouts with their taxes, because that is exactly what is happening.”

Click on the link below to visit the EUA website and read the full report on how the net zero transition exploits a rift between the wealthiest and less wealthy in Britain.

Read the full report.

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